For long-term investments, which channels are viable for significant returns given the current market scenario?

Short Answer

For significant returns, one can look forward towards stock funds, real estate investments, dividend stocks, target-date funds and so on. Each one of these investments does offer something better to investors based on their capital of investments made.

Detailed Answer

For any beginner who might see the market, they would be surprised about how well it had picked up since the covid dip in March 2020. Furthermore, investment opportunities have opened up looking at the dip in prices, all thanks to the economy and the pandemic arising to be major factors. But if you're looking for longer returns and great investment avenues, then there are some options that we have in mind that would help you out extensively.

But then, if you look at the options that we have to offer, these are mostly investments and long-term gains. But if you're looking for short-term gains, then you might want to trade aggressively to get exponential returns. Yes, there is high risk involved, but the returns surpass your investments at times. However, if you want suitable channels for investments where your money can grow overnight, then we have some options illustrated below.

Best Investment Channels for Significant Returns

• Growth stocks

Growth stocks are investment opportunities where they tend to grow exponentially high in a smaller time frame. Its where users can see their investment double or triple in valuation in a matter of months. They are highly volatile, though. Any slight negative news regarding the company might lead to their stock value plummeting. So if the stock is in a bull market, then gaining profits is quite admirable. However, it is in a bear market; then, it's better to overlook these stocks. These stocks are mostly technology-oriented stocks and IT companies which have this much growth in them.

• Real estate

Real estate is one of the best investment opportunities, provided you have sufficient capital to purchase land in the first place. However, in the long term, based on the location and the activities taking place in the area, the prices would fluctuate considerably. But then it's still an impeccable opportunity to have consistent cash flow once you lease or rent out space which is quite sustainable by itself. Slowly by slowly, you might gain back the investment made to build the property as well.

• Bond funds

Bonds are issued by the government or company where multiple people can invest in them. Its where the interest that you receive and the duration of the contract is fixed irrespective of the company's performance. They are quite stable and do offer great returns, provided your investment is comparable. However, the contract could run through 4-5 years while having a stagnant interest given. Also, if the bond agreement is executed, you could repay the principal amount to redeem the bond.

• Target date funds

Target funds are dated funds wherein you invest a certain amount monthly and leave the rest to the stock. These are generally long-term stocks where withdrawal of money once invested is locked in. Hence, it's the perfect type of investment if you're looking for another person to manage your funds and you get considerable returns towards the age of retirement.

• Stock funds

Stock funds are mostly mutual funds that help a culmination of different companies put into a portfolio that allows investors to invest money into them. Its more targeted towards people who want steady returns without looking at the market from morning to evening. Furthermore, there are different types of stock funds from which you can choose. These include large-cap, medium-cap, small-cap and other sectorial funds, which can be selected for making monthly or one-time investments.

• Dividend stocks

Dividend stocks are the best form of investment if you want significant returns annually based on the company's performance. However, this type of investment can be a bit expensive as you need to buy the stock upright, and the dividend could range anywhere from 5 rupees to 50 rupees based on the company. Hence, it's better to overlook this pointer. But for those who know the growth patterns and the type of operations executed by a company that might pay huge dividends, it's feasible for them.

Bottom line

Significant returns only build up during time over the investment opportunities that have listed above. Its where you can seek out the best option for you based on your capital. Do keep one thing in mind that you will need to have patience. If you have invested during the dip in the market and the economy, it will take months to gain back, and you might see exponential returns in years. It's all about being patient and waiting for the right time to invest your money to see any returns that would help in propelling you in the regions of profits.

Tagged With: real estatedividend stocksstock fundsgrowth stockstarget date fundslong term investments
Categories: Investment
Ask your query and our expert community would be happy to help
Discussion (0)
Related FAQs

Are healthcare stocks the new best investment for significant returns?

Healthcare stocks are quite beneficial in the given day and age, all thanks to its impact on the country. They have grown in the evaluation and even providing considerable returns that nobody would have predicted. Therefore, research the stocks that you wish to invest in in the long term and see how it pans out over 10-20 years.

How to choose stocks for long term investment in India?

There are various terms that play a huge role in determining how to choose stocks for long term investment such as P/E ratio, dividend consistency, etc. For a more elaborative information head below and read the explanation given for better understanding.

Which is better - Investing in Real Estate vs. Stocks?

Real estate is great if you’re looking to lease out the building to have a steady income. No doubt, in the long run, the land also could be sold to make a huge profit.

Stocks are quite liquid, but you can keep adding to them whenever there is a dip in the market. The selection of stocks to invest in is quite important. Both the investment criteria are feasible, but then the risk is there in both, and you should choose the ones that you understand better.

Which is better FD vs. Mutual Fund vs. Real Estate Investment?

FD vs Mutual Fund vs Real Estate Investment has its advantages in terms of how much you invest and your investing period. Longer the period, higher the returns.

Are CADILA, CIPLA, BIOCON the new stocks to invest in for the long term?

CADILA, BIOCON, CIPLA might be the stocks of tomorrow as they have provided significant returns owing to the pandemic and the demand for medicines and medical equipment that they produce. Furthermore, the demand will continue to surge even if the pandemic is controlled, ensuring that enough storage of medicines to prevent such a pandemic from arising is prevented.

What is difference between Long term vs Short term investment?

Short term and long term investments are the two types of investments, allowing people to invest in assets which can help them to generate a profit in the future. Both are important in there own ways and it is important to diversify also. An investor needs to be mindful about investing in both.

Is it a good time to invest in stocks? Bullish Stock Market

There are several questions that one can ask your advisor. These questions include whether its good time to enter or exit the market? Should in exit from debt and move to FD? do I continue my SIP portfolio? and other such questions.

Is Ventura Securities safe for trading and long term investing?

Ventura Capital is a Mumbai-based Full-Service Stock Broker that was formed in 1994. It offers Free account opening and 0 AMC charges but it charges software access charge from Rs 1000 to Rs 72000 per year which is refunded in terms of brokerage.

Are market highs good to invest in Equity mutual funds?

Understanding the relative position of the market, the absolute values do not matter much. What matters is what is the earnings multiple, currently the market is trading at, popularly captured by a metric called P/E ( Price to earnings).

Can NRI invest in Indian stock market?

Yes, NRIs can invest in Indian stock market. It is essential for the individual to check if he is considered as NRI or not according to the norms of the government. If yes, only then he can invest. There are also certain rules and regulations that must be followed.